Brent gains for third trading day in a row

Brent gained for the third day in a row by 16.30 UK time, lifting most of the European oil complex, although there was a drop in 0.5% marine fuel and naphtha prices.

Earlier in the day, April Low Sulfur Gasoil future expired on the ICE exchange to leave just 1,319 lots, or 131,900 mt of ultra low sulfur diesel, for delivery into the ARA hub over the second half of the month, data from the exchange shows.

The open interest volume for delivery was the lowest since the expiry of the December contract, when just 300 lots were left.

The April contract settled at $503.75/mt.

By the settle, the new front month contract of May was $5.25/mt (70 cts/b) higher than yesterday, compared to the 42 ct/bbl gain in June Brent over the same period.

Premium unleaded gasoline barges in AR were just $3/mt (36 cts/b) up from yesterday, keeping close to Brent. The market is still feeling the impact of last week's surprise 3.5 million barrel gasoline build in the US.

Naphtha cargo prices into north Europe dropped $2.50/mt from yesterday, softening the crack to -$4/b.

But ultra low sulfur diesel barges settled $5.50/mt (74 cts/b) higher.

The fuel oil market continued to soften versus sweet crude. Higher sulfur fuel oil barges gained just $1.75/mt (27 cts/b), and brokers were pegging April and May swaps flattish and slightly higher than the spot. Marine fuel 0.5% sulfur barge prices in ARA were down $4/mt, and also in line with the nearby forward curve from brokers.